Tuesday 01 July 2014
How to attract new SMSF clients
Tuesday 01 July 2014
While traditional networking techniques remain the most effective approach to finding new self managed super fund (SMSF) clients, the 2014 SMSF Service Model Report from Macquarie and the Self Managed Super Fund Association (then the SMSF Professionals’ Association of Australia - SPAA) shows there is also evidence that other, less widely used techniques can contribute to growth.
Word of mouth remains overwhelmingly the dominant source of new clients, cited by 92% of SMSF professionals overall. Yet firms are increasingly using a wide variety of marketing techniques to acquire new SMSF business, with social media in particular becoming increasingly important.
The origins of each business play a key role in shaping its approach to marketing. While financial planners excel at building relationships and cultivating referrals from existing clients, the survey findings suggest that SMSF administrators have been enthusiastic adopters of social media. They are also by far the most likely to rely on referrals from a network of professional peers and to use paid search marketing.
However, while traditional referral relationships are fundamental for most businesses, the research also uncovered some less conventional but surprisingly effective approaches to generating new opportunities.
Businesses that achieved exceptional revenue growth were most likely to have employed two less frequently used marketing techniques: client events and referral partnerships with mortgage brokers.
The report also showed there is clear evidence that higher client volumes and a wider range of services are key drivers of profitability, so it is unsurprising that many businesses are looking to increase their capabilities and grow their client base through strategic mergers or acquisitions. Overall, 85% of businesses say they are looking to acquire a business, buy a client book or take on new partners, while only 15% plan to sell all or part of the business.